2007-08-11 03:11:22 · 13 answers · asked by lundjohn_1 1 in Business & Finance ➔ Personal Finance
Yes. Once the forclosure has taken place and they then sell it at auction or any other manner, you are still responsible for the remainder of the balance. Sad, but true.
2007-08-11 03:16:58 · answer #1 · answered by Ollie's Mommy 3 · 0⤊ 1⤋
If the foreclosure is not complete, look into a "Short sale without recourse". 'Short sale' means you put the house up for sale and the bank agrees to accept the best offer as settlement of you mortgage. You will probably come closer to the actual balance this way. 'Without recourse' is legalese for they won't come after you for the remaining balance. If they actually complete the foreclosure, you usually do still owe the deficiency and the cost of foreclosing and selling the home. As another answer stated, laws do vary in some states.
2007-08-11 05:53:03 · answer #2 · answered by STEVEN F 7 · 0⤊ 1⤋
The correct answer is that it depends on what state you're in.
The term for paying the balance of the loan after foreclosure is called a "deficiency judgement." There are maybe a dozen states that do not allow deficiency judgements in one way or another.
In California, for instance, a lender cannot secure a deficiency judgement after foreclosing on a loan, when the loan was used as the purchase money for the property. This would not apply to non-purchase money loans, such as home equity lines of credit (HELOCs).
Also, in order to obtain a deficiency judgement, the lender must go to court, usually within a very short time after the foreclosure is complete. Many lenders won't bother if the deficiency is small.
The laws vary wildly from state to state, so it is best to research your own state's statutes.
2007-08-11 05:18:47 · answer #3 · answered by Mr Placid 7 · 1⤊ 1⤋
Yes, you will be responsible for remaining balance. One thing to keep in mind is that until the gavel drops on the auction, you still "own" the home. You can sell it until then. Since auctions typically don't bring anywhere near the value of the home, consider selling the house ASAP for below market value and then come up with the remaining amount some way, somehow.
2007-08-11 04:13:17 · answer #4 · answered by 5_for_fighting 4 · 1⤊ 1⤋
Yes
2007-08-11 03:16:13 · answer #5 · answered by jellybean19681993 3 · 0⤊ 1⤋
Yes. Or at least, you will OWE them the balance. If you don't have it, you won't be paying it any time soon!
You will probably end up having your wages docked to pay the lender over time...
2007-08-11 04:07:47 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Yes unless you file Chapter 7
2007-08-11 03:23:24 · answer #7 · answered by Jenny S 1 · 0⤊ 1⤋
It relies upon on what state you reside in. you will owe the type.............yet, in Texas they won't garnish your wages, your tax returns are yours, they in certainty can't do something, different than which you owe them. i think another states are the comparable?
2016-11-12 01:03:11 · answer #8 · answered by ? 4 · 0⤊ 0⤋
just like when they repro you car -- you owe the difference -- so i suggest you downsize quickly and save the house -- everything goes except food and the clothes on your back -- will not see on answers for a while because i mean really downsize!!!
2007-08-14 08:40:18 · answer #9 · answered by Anonymous · 0⤊ 1⤋
Yes and other iincurred expenses ...to foreclose and sell...
2007-08-11 03:38:13 · answer #10 · answered by Gerald 6 · 1⤊ 1⤋